20080317Application.pdf

'l
I DA~POR~
E:i An IDACORP Company
4 53
LISA D. NORDSTROM
Attorney II
March 14,2008
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
P. O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-08-03
Energy Efficiency Rider, Tariff Schedule 91
Dear Ms. Jewell:
Please find enclosed for filing an original and nine (9) copies of the Company's
Application requesting an increase to the Energy Efficiency Rider, Tariff Schedule 91,
effective June 1,2008.
Enclosed are nine (9) copies of the testimony and exhibits of Timothy E. Tatum in
support of the Application, with one copy of each designated as the "Reporter's Copy." A
compact disk containing the direct testimony and exhibits of the above-named Idaho Power
Company witness is also enclosed.
Also enclosed are the original and three (3) copies of the tariff schedules for the
Application in Case No. IPC-E-08-03 that the Company proposes become effective on
June 1, 2008. For the convenience of the Commission, I have also enclosed a copy of the
proposed tariff schedules in legislative format.
Three (3) copies of the Company's press release are also enclosed.
i would appreciate it if you would return a stamped copy of this letter for my file in
the enclosed stamped, self-addressed envelope.
Very truly yours,
~:u N. ?1tk~
Lisa D. Nordstrom
BLK:sh
Enclosures
P.O. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
LISA D. NORDSTROM ISB #5733
BARTON L. KLINE ISB #1526
Idaho Power Company
P. O. Box 70
Boise, Idaho 83707
Telephone No. [phone]
FAX Telephone No. [phone]
LNordstrom cø idahopower.com
BKlinecø idahopower.com
CEt
zûim MAR 14 Pli 4: 55
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE )
APPLICATION OF IDAHO POWER ) CASE NO. IPC-E-08-03
COMPANY FOR AUTHORITY TO )
REVISE THE ENERGY EFFICIENCY) APPLICATION
RIDER, TARIFF SCHEDULE 91 )
)
)
Idaho Power Company ("Idaho Power" or "the Company"), in accordance with
RP 052 and RP 201, et. seq., hereby respectfully makes Application to the Idaho Public
Utilities Commission (the "Commission") for an order approving an increase to the Energy
Efficiency Rider, Tariff Schedule 91, from 1.5 percent to 2.5 percent of base revenues
effective June 1, 2008. The Company also requests that the Commission remove the
current funding caps for residential and irrigation customers, and expand the scope of
Energy Efficiency Rider-funded activities to include small-scale renewable energy
programs.
APPLICATION - 1
In support of this Application, Idaho Power represents as follows:
BACKGROUND
1. In Order No. 28722 issued in Case Nos. IPC-E-01-07 and IPC-E-01-
11, the Commission directed Idaho Power to develop and file a comprehensive Demand-
Side Management ("DSM") program to provide customers with opportunities to reduce their
electric consumption. In filings that became part of Case No. IPC-E-01-13, the Company
identified a number of potential DSM programs that could be implemented to assist
customers in reducing their bils and proposed that the expenditures for the analysis and
implementation of energy conservation programs be funded through a charge known as
the Energy Efficiency Rider ("Rider").
2. On November 21, 2001, the Commission issued Order No. 28894 that
directed the Company to implement limited DSM programs for the 2001-2002 winter
heating. season but postponed consideration of funding of DSM programs until the
Company's 2002-2003 PCA filing was made in the spring of 2002. The Commission also
instructed Idaho Power to organize an Energy Efficiency Advisory Group (EEAG)
comprised of members from the Company's customer groups, special interest groups,
Commission Staff, and Company personnel to advise the Company on the implementation
of long-term DSM programs.
3. The Commission issued Order No. 29026 on May 13, 2002,
authorizing the implementation of the Energy Efficiency Rider as a means to fund DSM
programs. The Rider amount targeted for each customer class was approximately equal to
.5 percent of overall class revenue. It was imposed as a flat $0.30 per-month charge to
residential customers and as a cents-per-kilowatt-hour charge for all other customer
APPLICATION - 2
"I
classes. The Rider for irrigation customers was capped at a maximum of $15.00 per meter.
Although the Rider would provide approximately $2.6 milion annually forDSM measures,
the Commission recognized "that this initial amount of funding may not be adequate to
support some programs that could be very beneficial" and stated "this amount may be
increased in the future if necessary to take advantage of other cost-effective DSM
measures as circumstances warrant." Order No. 29026 at 20-21.
4. In Case No. IPC-E-04-29 filed in December 2004, the Company
requested authority to increase the Rider to 1.5 percent of base revenue applied uniformly
to all customer classes. The Commission issued Order No. 29784 on May 13, 2005,
authorizing the current Rider amount of 1.5 percent of base revenues with a monthly
funding cap of $1 .75 for residential customers and a cap of $50 per meter per month for
irrigation customers. The Commission stated that "implementing these two caps wil
moderate the Rider increases for residential and irrigation customers, while providing
significant funds to the Company's DSM programs for the next 12 months." Order No.
29784 at 5.
5. To date, the Energy Efficiency Rider has appeared as the
"Conservation Program Funding Charge" line item on customers' bills. As of June 1, 2008,
Idaho Power intends to combine the Energy Efficiency Rider and Fixed Cost Adjustment
into a single line item pursuant to Order No. 30267 entitled "Energy Efficiency Services."
PROPOSED RIDER INCREASE
6. Since the Rider was instituted in 2002, Idaho Power has implemented
and/or managed a broad array of cost-effective DSM programs and energy efficiency
initiatives. DSM programs are considered to be cost-effective when energy savings and/or
APPLICATION - 3
'l
demand reduction can be achieved at a lower cost than the next best resource alternative.
These programs benefit customers two-fold with opportunities to lower individual bils and
also reduce the Company's collective rates by minimizing the need to generate additional
power or buy power from the market. In 2007 Idaho Power offered the following Rider-
funded programs to specific customer classes, achieving annual energy savings of
approximately 10 aMW.
2007 DSM Programs, Sectors, and Operational Type
Program
AlC Cool Credit
Energy House Calls
ENERGY ST AFW Homes Northwest
ENERGY STAFW Lighting
Heating and Cooling Efficiency
Rebate Advantage
Residential Education Initiative
Building Efficiency Program
Custom Efficiency
Easy Upgrades
Commercial Education Initiative
Irrigation Efficiency Rewards
Irrigation Peak Rewards
Local Energy Efficiency Funds
NEEA
Sector
Residential
Residential
Residential
Residential
Residential
Residential
Residential
Commercial/Industrial
Commercial/Industrial
Commercial/Industrial
Commercial
Irrigation
Irrigation
All
All
Operational Type
Demand Response
Energy Efficiency
Energy Efficiency
Energy Efficiency
Energy Efficiency
Energy Efficiency
Other Programs and Activities
Energy Efficiency
Energy Efficiency
Energy Efficiency
Other Programs and Activities
Energy Efficiency
Demand Response
Other Programs and Activities
Market Transformation
7. Since 2002, Idaho Power has been expanding its DSM programs and
other energy efficiency initiatives. Idaho Power's DSM programs and energy efficiency
initiatives are expected to cost approximately $53 millon for 2008 through 2010. As set
forth in Exhibit NO.3, Table I of Timothy E. Tatum's testimony, the expected annual
program expenditures for 2008 through 2010 are $19,293,284, $16,787,116 and
$17,028,738, respectively.
8. The current Rider collects approximately $8.8 million per year to fund
Idaho Power's DSM programs and other energy efficiency initiatives. At the current 1.5
APPLICATION - 4
percent funding level, the Rider balancing account is expected to accumulate a deficit of
nearly $3.2 millon by June 1, 2008. Based on the Company's DSM program targets for
2008, the deficit is expected to grow to an estimated $8.8 millon by year-end 2008 at the
current 1.5 percent funding leveL.
9. To support expected program expenditures, Idaho Power proposes
that the Rider be increased from 1.5 percent to 2.5 percent of base revenue beginning
June 1, 2008. In support of this request, Idaho Power has included with this Application
the testimony and exhibits of Timothy E. Tatum and its proposed Schedule 91 tariff
(Attachment 1). Exhibit NO.3, Table II of Mr. Tatum's testimony, details the expected
annual program costs, the anticipated Rider funding at the recommended levels, and the
Rider fund balance remaining at the end of each year, 2008 through 2010. Even at the
proposed 2.5 percent Rider funding level, Idaho Power projects a deficit of approximately
$4.2 millon at the end of 2010.
10. Because DSM has become increasingly more integrated into Idaho
Power's business operationally and strategically, the Company plans to make a request in
its next general rate case filng for authorization to include in its operations and
maintenance expenses the approximately $3.5 millon in ongoing labor and administrative
expenses required to support its planned DSM efforts currently funded by the Rider.
Recovery of these ongoing expenses for labor, Northwest Energy Efficiency Allance
(NEEA) contributions and DSM departmental costs not directly related to specific DSM
program through base rates wil allow the 2.5 percent Rider to adequately fund the
Company's planned DSM efforts beyond 2010. However, the Company plans to continue
funding these costs through the Rider until they are included in base rates. Should these
APPLICATION - 5
costs not be included in base rates, the Company will continue to monitor the Rider
account to ensure that the funding percentage adequately supports the ongoing labor and
administrative expenses.
11. Rather than setting a date upon which the proposed 2.5 percent Rider
wil expire, Idaho Power requests that the 2.5 percent Rider become effective on June 1,
2008 and remain in place until it is determined that a different funding level is appropriate
as a result of a proceeding before the Commission.
REMOVAL OF FUNDING CAPS
12. Idaho Power requests that the Commission authorize removal of the
current funding caps for residential and irrigation customers. Since the time when the caps
were first authorized, Idaho Power has instituted a broad offering of cost-effective DSM
programs available to all of the major customer classes including residential and irrigation
customers. Each of the Company's DSM programs listed above in Paragraph 5 is detailed
in the 2007 DSM Annual Report, which is Exhibit 1 to Mr. Tatum's testimony.
13. As Idaho Power acquires cost-effective DSM and the benefit of
avoiding higher resource costs is reflected in rates, all customers benefit from the savings
in proportion to their energy usage.. Therefore, it is fair and reasonable to require
residential and irrigation customers to fund the Company's DSM programs in the same
manner as all other customer classes without artificial funding caps.
SMALL-SCALE RENEWABLE ENERGY PROGRAMS
14. Idaho Power also requests the Commission approve revised language
in Schedule 91 expanding the scope of Rider-funded activities to include small.scale
renewable energy programs. The Company proposes that it use Rider funds to provide
APPLICATION - 6
financial incentives to customers who install photovoltaic systems to supplement their own
energy usage if the program is shown to be cost-effective from the utilty cost perspective.
That is, Idaho Power favors the use of Rider funds to support such an endeavor as long as
its financial commitment is at or below the cost of the next best resource alternative.
MODIFIED PROCEDURE
15. Idaho Power believes that a technical hearing is not necessary to
consider the issues presented herein, and respectfully requests that this Application be
processed under Modified Procedure, i.e., by written submissions rather than by hearing.
RP 201 et seq. If, however, the Commission determines that a technical hearing is
required, the Company stands ready to present its testimony and support the Application in
such hearing.
COMMUNCIATIONS AND SERVICE OF PLEADINGS
16. This Application has been and wil be brought to the attention of Idaho
Power's affected customers by means of news releases to media in the Company's service
area. The news release, a copy of which accompanies this Application, also describes
recently proposed rate changes associated with the new power plant located at the
Evander Andrews Power Complex and the Fixed Cost Adjustment. The Company is
currently preparing a customer bil insert and wil file a copy with the Commission once it
has been finalized. Idaho Power wil also keep its Application, testimony, and exhibits
open for public inspection at its offices throughout the State of Idaho.
17. Communications and service of pleadings with reference to this
Application should be sent to the following:
APPLICATION- 7
Lisa D. Nordstrom
Barton L. Kline
Idaho Power Company
P.O. Box 70
Boise,IO 83707
Inordstrom cø idahopower.com
bkline cø idahopower.com
Timothy E. Tatum
John R. Gale
Idaho Power Company
P.O. Box 70
Boise, 10 83707
ttatum cø idahopower.com
rgale cø idahopower.com
REQUEST FOR RELIEF
18. Idaho Power Company respectfully requests that the Commission
issue an order authorizing: 1) an increase in the Energy Efficiency Rider Tariff from 1.5
percent to 2.5 percent of base revenues effective June 1 , 2008, 2) removal of funding caps
for residential and irrigation customers, and 3) expansion of Rider-funded activities to
include small-scale renewable energy programs.
Respectfully submitted this lif1: day of March 2008.
~12'fJld~
ISA O. NORD JROM
Attorney for Idaho Power Company
APPLICATION - 8
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-08-03
IDAHO POWER COMPANY
ATTACHMENT NO.1
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-08-03
IDAHO POWER COMPANY
ORIGINAL TARIFF
Idaho Power Company
I.P.U.C. No. 29, Tariff No. 101 Original Sheet No. 91-1
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABILITY
This schedule is applicable to all retail Customers served under the Company's schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company's expenditures for the
analysis and implementation of energy conservation and demand response programs.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Efficiency Rider percentage times the
sum of the monthly billed charges for the base rate components. The Monthly Charge will be
separately stated on the Customer's regular billng.
Schedule Energy Efficiency Rider
Schedule 1
Schedule 4
Schedule 5
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 39
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
1.5 %, but not to exceed $1.75 per meter per month
1.5 %, but not to exceed $1.75 per meter per month
1.5 %, but not to exceed $1.75 per meter per month
1.5%
1.5 %
1.5 %
1.5 %
1.5 %, but not to exceed $50.00 per meter per month
1.5 %
1.5 %
1.5%
1.5%
1.5 %
1.5%
1.5 %
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E~08-03
IDAHO POWER COMPANY
PROPOSED TARIFF
Idaho Power Company First Revised Sheet No. 91-1
Cancels
Original Sheet No. 91-1I.P.U.C. No. 29. Tariff No. 101
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABILITY
This schedule is applicable to all retail Customers served under the Company's schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company's expenditures for the
analysis and implementation of programs and initiatives that promote energy conservation, demand
response and renewable energy options.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Efficiency Rider percentage times the
sum of the monthly billed charges for the base rate components.
Schedule Energy Effciency Rider
Schedule 1
Schedule 4
Schedule 5
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 39
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
IDAHO
Issued - March 14, 2008
Effective - June 1, 2008
Issued by IDAHO POWER COMPANY
John R. Gale, Vice President, Regulatory Affairs
1221 West Idaho Street, Boise, ID
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-08-03
IDAHO POWER COMPANY
LEGISLATIVE TARIFF
Idaho Power Company
I.P.U.C. No. 29. Tariff No. 101 Original Sheet No. 91-1
SCHEDULE 91
ENERGY EFFICIENCY RIDER
APPLICABILITY
This schedule is applicable to all retail Customers served under the Company's schedules and
special contracts. This Energy Efficiency Rider is designed to fund the Company's expenditures for the
analysis and implementation of programs and initiatives that promote energy conservation.l aM
demand response programsand renewable energy options.
MONTHLY CHARGE
The Monthly Charge is equal to the applicable Energy Effciency Rider percentage times the
sum of the monthly billed charges for the base rate components. The Monthly Chargo 'Nill be
separately stated on the Customer's regular biling.
Schedule Energy Efficiency Rider
Schedule 1
Schedule 4
Schedule 5
Schedule 7
Schedule 9
Schedule 15
Schedule 19
Schedule 24
Schedule 39
Schedule 40
Schedule 41
Schedule 42
Schedule 26
Schedule 29
Schedule 30
l.2.5 %, but net to oxceed $1.75 per meter per menth
l.2.5 %, but not to exceod $1.75 per meter per month
l.2.5 %, OOot to exceed $1.75 per meter per Rl
l.2.5 %
l.2.5 %
l.2.5 %
l.2.5 %
l.2.5 %, but not to exceed $50.00 per meter per month
l.2.5 %
.1-..-52.5 %
l.2.5 %
l.2.5 %
:h52.5 %
l.2.5 %
l.2.5 %